[Solved] If the Expected Path of 1-Year Interest Rates Over the Next

Question 75
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If the expected path of 1-year interest rates over the next four years is 5 percent,4 percent,2 percent,and 1 percent,then the expectations theory predicts that today's interest rate on the four-year bond is


A)1 percent.
B)2 percent.
C)3 percent.
D)4 percent.

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